The entire inventory of Product Z that was on hand at December 31, Year 1, was completed in Year 2 at a cost of $1,800 and sold at a price of $17,150.

Required:
a. Determine the impact that Product Z has on income in Year 1 and Year 2 under (1) IFRS and (2) U.S. GAAP.
b. Summarize the difference in income, total assets, and total stockholders' equity using the two different sets of accounting rules over the two-year period.